I am betting we will hear from him before the week is out. He doesn't like surprises, and this had to be a kick in the teeth for him. He has the power and the resources to turn up the heat on management, especially when shareholders are angry. I bought back in on the dip because I expect Ichan will not sit back and take this without a fight. A sale of the company, taking it private, etc. could all be in the near future. Although I am not an Ichan fan, he knows how to manipulate the market and making $. Some may be tempted to short, but I think that could be very dicey at best. IMHO.
I agree, the short play is always best before earnings. I am not so sure if Icahn is surprised. he is probably smiling as it gives whatever plan he has more credibility. I do feel he may change to activist shareholder status. I also think Ricci would rather sell then get booted out, just judging by his ego.
According to the last report I read in early April, Ichan owns about 29 million shares, roughly 9.3% of the company. Even thought this is a passive stake at this time, Ichan lost over 120 million on paper so far today. That isn't chump change even for him. I expect sparks will fly shortly.
"Icahn has 9.3% himself; additionally, Icahn Partners MF (IPMF) LP holds 2.95%, IPMF II LP (1.16%), IPMF III LP (0.51%), Icahn Offshore LP (4.62%), Icahn Partners LP (2.8%), Icahn Capital LP (7.43%), Icahn Enterprises Holdings LP (7.43%), Icahn Enterprises G.P. Inc. (7.43%). Icahn Onshore LP, with an additional 2.8% and didn't include the 9.3%; all in all, the aggregated LPs and his personal holdings show a ballpark figure of 46.4% voting power.
Warburg Pincus is only around 14.6%, and T. Rowe Price (aggregate) is near 9.3% itself."